SLM Corp - FORM 8-K - EX-99.1

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8-K - FORM 8-K - SLM Corp	d901876d8k.htm

SALLIE MAE

Investor Presentation

April 2015

Exhibit 99.1

Forward-Looking Statements and Disclaimer

Cautionary Note Regarding Forward-Looking Statements

The following information is current as of April 1, 2015 (unless otherwise noted) and should be read in connection with SLM Corporation’s Annual Report on Form 10-K for the year

ended December 31, 2014 (filed with the Securities Exchange Commission (“SEC”) on February 26, 2015) and subsequent reports filed with the SEC.

This Presentation contains “forward-looking” statements and information based on management’s current expectations as of the date of this presentation. Statements that are not

historical facts, including statements about the Company’s beliefs or expectations and statements that assume or are dependent upon future events, are forward-looking

statements. Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause actual results to be materially different from those

reflected in such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in Item 1A “Risk Factors” and elsewhere in the Company’s

Annual Report on Form 10-K for the year ended Dec. 31, 2014 (filed with the SEC on Feb. 26, 2015); increases in financing costs; limits on liquidity; increases in costs associated

with compliance with laws and regulations; changes in accounting standards and the impact of related changes in significant accounting estimates; any adverse outcomes in any

significant litigation to which the Company is a party; credit risk associated with the Company’s exposure to third parties, including counterparties to the Company’s derivative

transactions; and changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing

laws). The Company could also be affected by, among other things: changes in its funding costs and availability; reductions to its credit ratings; failures or breaches of its operating

systems or infrastructure, including those of third-party vendors; damage to its reputation; failures or breaches to successfully implement cost-cutting and restructuring initiatives

and adverse effects of such initiatives on the Company’s business; risks associated with restructuring initiatives; changes in the demand for educational financing or in financing

preferences of lenders, educational institutions, students and their families; changes in law and regulations with respect to the student lending business and financial institutions

generally; changes in banking rules and regulations, including increased capital requirements; increased competition from banks and other consumer lenders; the creditworthiness

of customers; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of earning assets versus

funding arrangements; rates of prepayment on the loans made by the Company and its subsidiaries; changes in general economic conditions and the Company’s ability to

successfully effectuate any acquisitions; and other strategic initiatives. The preparation of the Company’s consolidated financial statements also requires management to make

certain estimates and assumptions including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect. All forward-looking

statements contained in this Presentation are qualified by these cautionary statements and are made only as of the date of this Presentation. The Company does not undertake

any obligation to update or revise these forward-looking statements to conform such statements to actual results or changes in its expectations.

The Company reports financial results on a GAAP basis and also provides certain core earnings performance measures. The difference between the Company’s “Core Earnings”

and GAAP results for the periods presented were the unrealized, mark-to-market gains/losses on derivative contracts. These are recognized in GAAP but not in “Core Earnings”

results. The Company provides “Core Earnings” measures because this is what management uses when making management decisions regarding the Company’s performance

and the allocation of corporate resources. The Company’s “Core Earnings” are not defined terms within GAAP and may not be comparable to similarly titled measures reported by

other companies.

For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Key Financial Measures-Core Earnings” in the

Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for a further discussion and for a complete reconciliation between GAAP net income and core

earnings.

Disclaimer

A significant portion of the historical data relating to historical Smart Option Student Loan performance used to prepare these materials was provided to Sallie Mae Bank by

Navient Corporation (“Navient”) pursuant to a Data Sharing Agreement executed in connection with the Spin-Off. Under the data sharing agreement, Navient makes no

representations or warranties to Sallie Mae Bank concerning the accuracy and completeness of information that they provided. Sallie Mae Bank has not independently verified,

and is not able to verify, the accuracy or completeness of the data provided under the agreement or of Navient’s representations and warranties. Although we have no reason to

believe that the data used to prepare the tabular and graphic presentations in this documents, as a whole, is materially inaccurate or incomplete, and have assumed that the data

provided by Navient under the Data Sharing Agreement as a whole to be materially accurate and complete, neither the Company nor any person on its behalf has independently

verified the accuracy and completeness of such data.

Historical Smart Option Loan Performance

Important Information Regarding Historical Loan Performance Data

On April 30, 2014 (the “Spin-Off Date”), the former SLM Corporation legally separated (the “Spin-Off”) into two distinct publicly traded entities: an education loan management, servicing and asset recovery business called Navient Corporation (“Navient”),

and a consumer banking business called SLM Corporation. SLM Corporation’s primary operating subsidiary is Sallie Mae Bank. We sometimes refer to SLM Corporation, together with its subsidiaries and its affiliates, during the period prior to the Spin-Off

as “legacy SLM.”

In connection with the Spin-Off, all private education loans owned by legacy SLM, other than those owned by its Sallie Mae Bank subsidiary as of the date of the Spin-Off, and all private education loan asset-backed securities (“ABS”) trusts previously

sponsored and administered by legacy SLM were transferred to Navient. As of the Spin-Off date, Navient and its sponsored ABS trusts owned $30.8 billion of legacy SLM’s private education loan portfolio originated both prior to and since 2009. As of the

Spin-Off Date, Sallie Mae Bank owned $7.2 billion of private education loans, the vast majority of which were unencumbered Smart Option Student Loans originated since 2009.

Legacy SLM’s Private Education Loan and ABS Programs Prior to the Spin-Off

In 1989, legacy SLM began making private education loans to graduate students. In 1996, legacy SLM expanded its private education loan offerings to undergraduate students. Between 2002 and 2007, legacy SLM issued $18.6 billion of private education

loan-backed ABS in 12 separate transactions.

In 2008, in response to the financial downturn, legacy SLM revised its private education loan underwriting criteria, tightened its forbearance and collections policies, ended direct-to-consumer disbursements, and ceased lending to students attending certain

for-profit schools. Legacy SLM issued no private education loan ABS in 2008.

In 2009, legacy SLM introduced its Smart Option Student Loan product and began underwriting private education loans with a proprietary custom credit score. The custom credit score included income-based factors, which led to a significant increase in the

percentage of loans requiring a co-signer, typically a parent. The initial loans originated under the Smart Option Student Loan program (the “Interest Only SOSLs”) were variable rate loans and required interest payments by borrowers while in school, which

reduced the amounts payable over the loans’ lives and helped establish repayment habits among borrowers. In 2010, legacy SLM introduced a second option for its Smart Option Student Loan customers, which required a $25 fixed monthly payment while

borrowers were in school (the “Fixed Pay SOSLs”). In 2011, legacy SLM introduced another option for its Smart Option Student Loan customers, which allowed borrowers to defer interest and principal payments until after a student graduates or separates

from school (the “Deferred SOSLs”). In 2012, Sallie Mae introduced a fixed rate loan option for its Interest Only, Fixed Pay and Deferred SOSLs. Borrowers must select which of these options they prefer at the time of loan origination and are not permitted

to change those options once selected.

In 2011, legacy SLM included private education loans originated under the Smart Option Student Loan program in its ABS pools for the first time. Between 2011 and 2014, the mix of Smart Option Student Loans included in legacy SLM’s private education

loan ABS steadily increased as a percentage of the collateral pools, from 10% initially to 64% in later transactions.

Legacy SLM collected Smart Option Student Loans pursuant to policies that required loans be charged off after 212 days of delinquency. In April 2014, Sallie Mae Bank began collecting the vast majority of its Smart Option Student Loans pursuant to

policies that required loans be charged off after 120 days of delinquency, in accordance with bank regulatory guidance. As a result of the various policies described above, it was not until recently that (a) a meaningful amount of Smart Option Student Loan

charge-offs occurred in Sallie Mae Bank’s portfolio, and (b) performance data on Sallie Mae Bank’s owned Smart Option Student Loan portfolio became useful as a basis for evaluating historical trends for Smart Option Student Loans. For the reasons

described above, much of Sallie Mae Bank’s historical performance data does not reflect current collections and charge off practices and may not be indicative of the future performance of the Bank’s Smart Option Student Loans. We do not believe the

credit performance indicators for Sallie Mae Bank-owned and -serviced Smart Option Student Loans yet provide meaningful period-over-period comparisons.

Sallie Mae Bank’s Private Education Loan and ABS Programs Post-Spin Off

Originations.

Following the Spin-Off, Sallie Mae Bank has continued to originate loans under the Smart Option Student Loan program. As of December 31, 2014, it owned $9.5 billion of private education loans, the vast majority of which were Smart Option Student

Loans originated since 2009, and two-thirds of which were originated in 2013 and 2014. Navient ceased originating private education loans following the Spin-Off.

Servicing.

Immediately prior to the Spin-Off, Sallie Mae Bank assumed responsibility for collections of delinquent loans on the vast majority of its Smart Option Student Loan portfolio. Following the Spin-Off Date, Navient continued to service all private education

loans owned by the two companies on its servicing platform until October 2014, when servicing for the vast majority of Sallie Mae Bank’s private education loan portfolio was transitioned to Sallie Mae Bank. Sallie Mae Bank now services and is responsible for

collecting the vast majority of the Smart Option Student Loans it owns.

Securitization and Sales.

In August 2014, Sallie Mae Bank sponsored its first private education loan ABS, SMB Private Education Loan Trust 2014-A (the “SMB 2014-A transaction”). Because this transaction occurred prior to the transfer of loan servicing from Navient

to Sallie Mae Bank, Sallie Mae Bank acted as master servicer for the transaction and Navient as subservicer, and the loan pool is serviced pursuant to Navient servicing policies. Also in August 2014, Sallie Mae Bank sold Navient approximately $800 million of

performing Smart Option Student Loans.

Prior to the Spin-Off, all Smart Option Student Loans were originated and initially held by Sallie Mae Bank, as a subsidiary of legacy SLM. Sallie Mae Bank typically then sold certain of the performing Smart Option Student Loans to an affiliate

of legacy SLM for securitization. Additionally, on a monthly basis Sallie Mae Bank sold all loans that were over 90 days past due, in forbearance, restructured or involved in a bankruptcy to an affiliate of legacy SLM. As a result of this second practice, prior to the

occurrence of the Spin-Off, historical performance data for Sallie Mae Bank’s Smart Option Student Loan portfolio reflected minimal later stage delinquencies, forbearance or charge-offs.

Additional Information.

–

“31-60 Day Delinquencies as a Percentage of Loans in P&I Repayment;”

–

“61-90 Day Delinquencies as a Percentage of Loans in P&I Repayment ;”

–

“Forbearance as a Percentage of Loans in P&I Repayment and Forbearance;”

–

“Annualized Gross Defaults as a Percentage of Loans in P&I Repayment; ”and

–

“Voluntary and Total Constant Prepayment Rates by Origination Vintage and Product.”

Important Information Regarding Historical Loan Performance Data

(cont.)

Types of Smart Option Loan Portfolio Data

The portfolio data we used in this report comes from two separate sources of information:

(1) Combined Smart Option Student Loan Portfolio Data for Legacy SLM, Navient and Sallie Mae Bank. Information in this category is presented on a combined basis for loans originated under the Smart Option Student Loan program, whether

originated by Sallie Mae Bank when it was part of legacy SLM or by Sallie Mae Bank post Spin-Off, and regardless of whether the loan is currently held by an ABS trust, or held or serviced by Navient or Sallie Mae Bank. Data in this category is

used in the tables below under the following headings:

“Cumulative Gross Defaults by Origination Vintage and Years in Interim Repayment;”

“Cumulative Gross Defaults by Loan Type;”

“Cumulative Recovery Rate for Charge-Off Vintages Since 2011.”

This combined Smart Option Student Loan portfolio data provides insight into gross defaults of all Smart Option Student Loans since 2011, regardless of ownership or servicing standard. We believe historical loan performance data since 2011 is

more representative of the expected performance of Smart Option Student Loans to be included in new Sallie Mae Bank trusts than data available for earlier periods. Data available for earlier periods includes a limited number of Smart Option

Student Loan product types, a limited amount of loans in principal and interest repayment status, and limited periods of loan performance history. Combined Smart Option Student Loan portfolio data is presented by vintage principal and interest

repayment years.

A significant portion of the combined Smart Option Student Loan performance data described in this category is provided to Sallie Mae Bank by Navient under a data sharing agreement executed in connection with the Spin-Off.

This data sharing agreement expires in 2019. Under the data sharing agreement, Navient makes no representations or warranties to Sallie Mae Bank concerning the accuracy and completeness of information that it provided.

Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or completeness of the data provided under the agreement.

Loans contained in the combined Smart Option Student Loan portfolio category were serviced by legacy SLM prior to the Spin-Off, and by either Navient or Sallie Mae Bank after the Spin-Off. As noted above, loans serviced by legacy SLM and

Navient were serviced pursuant to different policies than those loans serviced by Sallie Mae Bank after the Spin-Off. Specifically, legacy SLM charged off loans after 212 days of delinquency, and Navient has continued this policy. Sallie Mae

Bank currently charges off loans after 120 days of delinquency. All loans included in the combined Smart Option Student Loan portfolio were serviced by legacy SLM pursuant to a 212-day charge off policy prior to the Spin-Off. Following the

Spin-Off, a portion of the loans included in the combined Smart Option Student Loan portfolio data have been serviced by Navient pursuant to a 212-day charge off policy, and a portion have been serviced by Sallie Mae Bank pursuant to a 120-

day charge off policy. As a result, future performance of loans serviced by Sallie Mae Bank may differ from the historical performance of loans reflected in this combined Smart Option Student Loan portfolio data.

(2) Legacy SLM Consolidated Smart Option Student Loan Portfolio Data prior to the Spin-Off Date, and Sallie Mae Bank-Only Smart Option Student Loan Data from and after the Spin-Off Date. Information in this category is presented (a) prior

to the Spin-Off Date for Smart Option Student Loans owned or serviced by legacy SLM prior to the Spin-Off, and (b) from and after the Spin-Off Date for Smart Option Student Loans owned and serviced by Sallie Mae Bank from and after the

Spin-Off. Data in this category is used in the tables below under the following headings:

This consolidated Smart Option Student Loan portfolio data provides insight into historical delinquencies, forbearance, defaults and prepayment rates specifically of the Smart Option Student Loans covered, regardless of the loans’ ownership at

the time, or whether the loans serve as collateral for an ABS trust. We believe this data is currently the most relevant data available for assessing historical Smart Option Student Loan performance.

Loans owned or serviced by legacy SLM and contained in this consolidated Smart Option Student Loan portfolio category were serviced pursuant to legacy SLM servicing policies prior to the Spin-Off. Loans owned and serviced by Sallie Mae

Bank and contained in this consolidated Smart Option Student Loan portfolio were serviced pursuant to Sallie Mae Bank servicing policies since the Spin-Off. The servicing policies of legacy SLM were different than the servicing policies of

Sallie Mae Bank. Specifically, legacy SLM charged off loans after 212 days of delinquency, while Sallie Mae Bank charges off loans after 120 days of delinquency in accordance with bank regulatory guidance. As a result, future performance of

loans serviced by Sallie Mae Bank may differ from the historical performance of loans reflected in this consolidated Smart Option Student Loan portfolio data.

Any data or other information presented in the following report is for comparative purposes only, and, is not to be deemed a part of any offering of securities.

–

“91-plus Day Delinquencies as a Percentage of Loans in P&I Repayment ;”

Historical Smart Option Loan Performance

Smart Option Gross Defaults During Interim Repayment

(1)

Smart Option loans have very low incidence of delinquency, forbearance or default until after a borrower’s

graduation or separation, when full principal and interest payments become due

(1)

Loans

‘Interim

Repayment’

refers

loans

made

under

the

Smart

Option

Interest

Only

and

Fixed

Payment

loan

programs

with

payments

due

while

borrowers

are

school,

grace

deferment.

‘Interim

Repayment’

precedes

the

full

principal

and

interest

repayment

period.

(2)

Certain

data

used

the

charts

above

was

provided

Navient

under

data

sharing

agreement.

Sallie

Mae

Bank

has

not

independently

verified,

and

not

able

verify,

the

accuracy

completeness

the

data

provided

under

the

agreement.

Note:

Legacy

SLM

and

Navient

portfolio

serviced

pursuant

212

day

charge-off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge-off

policy.

Historical

trends

may

not

indicative

future performance.

0.3%

0.2%

0.1%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

0.9%

1.0%

1.1%

1.2%

1.3%

1.4%

1.5%

Years in Interim Repayment

2011

2012

2013

Smart

Option

Student

Loans

Serviced

Portfolio

Cumulative Gross Defaults by Origination Vintage

and

Years

Interim

Repayment

(1)

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

Smart Option Serviced Portfolio: 31-60 Day Delinquencies

(1)

Loans

‘P&I

Repayment’

includes

only

those

loans

for

which

scheduled

principal

and

interest

payments

are

due.

Note:

Legacy

SLM

portfolio

serviced

pursuant

212

day

charge

off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge

off

policy.

Historical

trends

may

not

indicative of future performance.

Smart Option Student Loans -

Serviced Portfolio

31-60

Days

Delinquencies

Loans

P&I

Repayment

(1)

Data for Legacy SLM thru April 30, 2014 and Sallie Mae Bank since May 1, 2014

Smart Option Serviced Portfolio: 61-90 Day Delinquencies

(1)

Loans

‘P&I

Repayment’

includes

only

those

loans

for

which

scheduled

principal

and

interest

payments

are

due.

Note:

Legacy

SLM

portfolio

serviced

pursuant

212

day

charge

off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge

off

policy.

Historical

trends

may

not

indicative of future performance.

Smart Option Student Loans -

Serviced Portfolio

61-90

Days

Delinquencies

Loans

P&I

Repayment

(1)

Data for Legacy SLM thru April 30, 2014 and Sallie Mae Bank since May 1, 2014

Smart Option Serviced Portfolio: 91+ Day Delinquencies

(1)

Loans

‘P&I

Repayment’

includes

only

those

loans

for

which

scheduled

principal

and

interest

payments

are

due.

Note:

Legacy

SLM

portfolio

serviced

pursuant

212

day

charge

off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge

off

policy.

Historical

trends

may

not

indicative of future performance.

Smart Option Student Loans -

Serviced Portfolio

91+

Days

Delinquencies

Loans

P&I

Repayment

(1)

Data for Legacy SLM thru April 30, 2014 and Sallie Mae Bank since May 1, 2014

Smart Option Serviced Portfolio: Forbearance

(1)

Loans

‘P&I

Repayment’

includes

only

those

loans

for

which

scheduled

principal

and

interest

payments

are

due.

Note:

Legacy

SLM

portfolio

serviced

pursuant

212

day

charge

off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge

off

policy.

Historical

trends

may

not

indicative of future performance.

Smart Option Student Loans -

Serviced Portfolio

Forbearance

Loans

P&I

Repayment

and

Forbearance

(1)

Data for Legacy SLM thru April 30, 2014 and Sallie Mae Bank since May 1, 2014

Smart Option Serviced Portfolio: Annualized Gross Defaults

(1)

Loans

‘P&I

Repayment’

include

only

those

loans

for

which

scheduled

principal

and

interest

payments

are

due.

Note:

Legacy

SLM

portfolio

serviced

pursuant

212

day

charge

off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge

off

policy.

Historical

trends

may

not

indicative of future performance.

Smart Option Student Loans -

Serviced Portfolio

Annualized

Gross

Defaults

Loans

P&I

Repayment

(1)

Data for Legacy SLM thru April 30, 2014 and Sallie Mae Bank since May 1, 2014

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Legacy SLM: Annualized Gross Default Rate as a % of P&I

SLM Bank: Annualized Gross Default Rate as a % of P&I

Smart Option Vintage Data: Cumulative Gross Default by Loan Type

(1)

Loans

‘P&I

Repayment’

includes

only

those

loans

for

which

scheduled

principal

and

interest

payments

are

due.

Data

December

31,

2014.

(2)

Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or completeness

of the data provided under the agreement.

Note:

Legacy

SLM

and

Navient

portfolio

serviced

pursuant

212

day

charge-off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge-off

policy.

Historical

trends

may

not

indicative

future performance.

Smart

Option

Student

Loans

Serviced

Portfolio:

All

Products

Cumulative

Defaults

P&I

Repayment

Vintage

and

Years

P&I

Repayment

(1)

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

Smart

Option

Student

Loans

Serviced

Portfolio:

Interest

Only

Cumulative

Defaults

P&I

Repayment

Vintage

and

Years

P&I

Repayment

(1)

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

Smart

Option

Student

Loans

Serviced

Portfolio:

Fixed

Pay

Cumulative

Defaults

P&I

Repayment

Vintage

and

Years

P&I

Repayment

(1)

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

Smart

Option

Student

Loans

Serviced

Portfolio:

Deferred

Cumulative

Defaults

P&I

Repayment

Vintage

and

Years

P&I

Repayment

(1)

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

4.2%

2.6%

1.3%

2011

2012

2013

4.5%

2.5%

1.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Years in P&I Repayment

2011

2012

2013

Years in P&I Repayment

3.7%

2.7%

1.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2011

2012

2013

Years in P&I Repayment

2.7%

1.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Years in P&I Repayment

2012

2013

Smart Option Vintage Data: Prepayments by Vintage

Following the first year after disbursement, total prepayments have generally ranged around 4%

(1)

Data for all loans from initial disbursement, whether or not scheduled payments are due. Total CPR includes both voluntary prepayments and defaults.

(2)

Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or completeness of the data provided under the

agreement.

(3)

Data as of January 31, 2015. Partial periods are removed from the analysis.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Quarters Since Disbursement

Smart

Option

Student

Loans

Serviced

Portfolio

Total

CPR

Origination

Vintage

and

Product

(1)

Interest Only, Fixed Payment and Deferred Products

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

(3)

2011 Vintage

2012 Vintage

2013 Vintage

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Quarters Since Disbursement

Smart Option Student Loans -

Serviced Portfolio

Voluntary

CPR

Origination

Vintage

and

Product

(1)

Interest Only, Fixed Payment and Deferred Products

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

(3)

2011 Vintage

2012 Vintage

2013 Vintage

Note: Legacy SLM and Navient portfolio serviced pursuant to a 212 day charge-off policy. Sallie Mae Bank portfolio serviced pursuant to a 120 day charge-off policy. Historical trends may not be indicative of future performance.

Smart Option Vintage Data: Prepayments

Following the first year after disbursement, voluntary prepayments have generally ranged from between 2-3% for

the Smart Option Deferred loan product, to 5-6% for the Interest Only product

(1)

Data for all loans from initial disbursement, whether or not scheduled payments are due. Total CPR includes both voluntary prepayments and defaults.

(2)

agreement.

(3)

Data as of January 31, 2015. Partial periods are removed from the analysis.

Note:

Legacy

SLM

and

Navient

portfolio

serviced

pursuant

212

day

charge-off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge-off

policy.

Historical

trends

may

not

indicative

future

performance.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Quarters Since Disbursement

Smart Option Student Loans -

Serviced Portfolio

Voluntary

CPR

Origination

Vintage

and

Product

(1)

Interest Only, Fixed Payment and Deferred Products

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

(3)

2011 Cohort, Smart Option IO Total

2011 Cohort, Smart Option Fixed Total

2012 Cohort, Smart Option IO Total

2012 Cohort, Smart Option Fixed Total

2012 Cohort, Smart Option Deferred Total

2013 Cohort, Smart Option IO Total

2013 Cohort, Smart Option Fixed Total

2013 Cohort, Smart Option Deferred Total

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Quarters Since Disbursement

Smart Option Student Loans -

Serviced Portfolio

Total

CPR

Origination

Vintage

and

Product

(1)

Interest Only, Fixed Payment and Deferred Products

Data for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

Present

(2)

(3)

2011 Cohort, Smart Option IO Total

2011 Cohort, Smart Option Fixed Total

2012 Cohort, Smart Option IO Total

2012 Cohort, Smart Option Fixed Total

2012 Cohort, Smart Option Deferred Total

2013 Cohort, Smart Option IO Total

2013 Cohort, Smart Option Fixed Total

2013 Cohort, Smart Option Deferred Total

Sallie Mae Bank

#1 saving, planning and paying for education

company with 40-years of leadership in the

education lending market

Industry leading 53% market share in private

education lending

Over 2,400 actively managed university

relationships across the U.S.

Complementary consumer product offerings

Over one million long-term engaged customers

across the Sallie Mae brands

The Sallie Mae Brand

2014 Sallie Mae Highlights

Completed legal separation from Navient on April 30, 2014

Generated “Core Earnings”

of $195 million for the year ended December 31, 2014

Originated

$4.1

billion

high

quality

private

education

loans

2014,

increase

over

2013

Grew private education loan portfolio by 27%

Completed loan sales of $1.6 billion at favorable rates

Closed a $750 million secured funding facility in December 2014

Completed the roll out of independent servicing and customer support capabilities

Sallie Mae’s Private Student Loan Originations Growth

Sallie Mae Smart Option Student Loan Originations

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2011

2012

2013

2014

Private Education Loan Originations

$2,737

$3,342

$3,795

$4,076

14%

22%

Origination Statistics ($)

2011

2012

2013

2014

% Cosigned

91%

90%

% In School Payment

73%

58%

56%

Average Originated FICO

748

745

749

Sallie Mae’s Smart Option Loan Product Overview

The Smart Option loan product was introduced by

Sallie Mae in 2009

The Smart Option loan program consists of:

Smart

Option

Interest

Only

loans

require

full

interest payments during in-school, grace, and

deferment periods

Smart

Option

Fixed

Pay

loans

require

$25

fixed payments during in-school, grace, and

deferment periods

Smart

Option

Deferred

loans

–

not

require

payments during in-school and grace periods

Variable rate loans indexed to LIBOR, or fixed rate

Smart Option payment option may not be changed after

selected at origination

Underwritten using proprietary credit score model

Marketed primarily through the school channel and also

directly to consumers, with all loans certified by and

disbursed directly to schools

Smart Option Loan Program

Origination Channel

School

Typical Borrower

Student

Typical Co-signer

Parent

Typical Loan

$10,000 avg orig bal, 5 to 15 yr term,

in-school

payments

interest

only,

$25

fixed

fully deferred

Origination Period

March 2009 to present

Certification and

Disbursement

School certified and school disbursed

Borrower Underwriting

FICO, custom credit score model, and

judgmental underwriting

Borrowing Limits

$200,000

Current ABS Criteria

For-Profit;

FICO

670

Not-for-Profit;

FICO

640

Historical Risk-Based Pricing

L + 2% to L + 14%

Dischargeable in Bankruptcy

(1)

Additional Characteristics

Made to students and parents primarily through

college financial aid offices to fund 2-year,

4-year

and

graduate

school

college

tuition,

room and board

Also available on a limited basis to students and

parents to fund non-degree granting secondary

education, including community college, part

time, technical and trade school programs

Both Title IV and non-Title IV schools

(1) Private education loans are typically non-dischargeable in bankruptcy, unless a

borrower can prove that repayment of the loan would impose an "undue hardship“.

Smart Option Loan Projected Gross Default Timing

Defaults

private

education

loans

are

generally

front-loaded

Approximately

two-thirds

projected

gross

charge-offs

are

expected

occur

within

three

years

after

loans

enter full principal and interest repayment

Years in P&I Repayment

Periodic Gross Defaults

Cumulative Gross Defaults

1.5%

3.7%

5.4%

6.7%

7.4%

7.7%

7.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Sallie Mae Bank Smart Option Student Loans

Projected Gross Default Timing Curve for Loans in P&I Repayment

(1)(2)

(1)

Loans in ‘P&I Repayment’ includes only those loans for which scheduled principal and interest payments are due.

(2)

Projected for Sallie Mae Bank serviced Smart Option loan portfolio as of December 31, 2014, based on a 120 day charge-off policy. Subject to change.

Conservative Funding Approach

Retail deposits

Brokered deposits

Secured debt

2014

Target

60%

40%

60%

Low cost deposit base with no branch overhead

90% of retail deposits are savings accounts

Brokered deposits used as alternative funding source

Term funding / securitizations will augment deposit

funding for future growth

Experienced capital markets team

Capacity to securitize $2

$3bn of private education

loans

Multi-year revolving conduit facility

Provides seasonal loan funding and backup liquidity

$750mm conduit with 2-year term provided by consortium

of banks

Whole loan sales used to manage balance sheet

growth

Targeting $1 –

$2bn of loan sales annually

Substantial liquidity portfolio

$2.4bn of on-balance sheet cash provides seasonal loan

funding and liquidity

SMB vs. Legacy SLM Private Education Loan ABS Summary

SMB

11-A

11-B

11-C

12-A

12-B

12-C

12-D

12-E

13-A

13-B

13-C

14-A

15-A

14-A

Total Bond Amount ($mil)

562

825

721

547

891

1,135

640

976

1,108

1,135

624

676

664

689

382

Initial AAA Enhancement (%)

21%

18%

24%

27%

26%

25%

21%

26%

22%

28%

24%

30%

32%

21%

Initial Single-A Enhancement (%)

15%

13%

20%

15%

22%

23%

12%

Loan Program (%)

Signature/Law/MBA/Med

88%

91%

71%

61%

48%

43%

37%

35%

26%

29%

26%

19%

26%

27%

Smart Option

10%

20%

30%

40%

45%

48%

63%

64%

63%

50%

100%

Consolidation

Direct to Consumer

12%

10%

12%

15%

21%

Career Training

Total

100%

Loan Status (%)

School, Grace, Deferment

55%

45%

37%

38%

40%

39%

44%

59%

62%

63%

49%

46%

24%

91%

P&I Repayment

43%

52%

60%

57%

59%

54%

39%

36%

50%

53%

68%

Forbearance

Wtd Avg Term to Maturity (Mo.)

192

189

182

171

164

151

144

148

144

146

143

150

161

155

140

% Loans with Cosigner

72%

75%

71%

75%

77%

79%

80%

81%

82%

79%

80%

93%

% Loans with No Cosigner

28%

25%

29%

25%

23%

21%

20%

19%

18%

21%

20%

Wtd Avg FICO at Origination

737

736

733

735

736

737

740

733

741

740

742

739

731

747

Wtd Avg Recent FICO at Issuance

723

722

720

724

726

728

730

722

733

734

733

741

737

714

745

WA FICO (Cosigner at Origination)

747

745

744

745

748

741

751

750

749

750

748

738

750

WA FICO (Cosigner at Rescored)

736

731

734

732

734

735

738

728

745

746

745

750

746

724

748

WA FICO (Borrower at Origination)

709

710

704

705

707

710

702

703

702

705

707

701

708

WA FICO (Borrower at Rescored)

690

695

688

700

702

698

696

683

684

682

701

707

672

701

Variable Rate Loans

100%

89%

97%

85%

Wtd Avg LIBOR Equivalent Margin

7.35%

7.17%

6.23%

6.60%

6.86%

7.02%

7.07%

7.34%

6.65%

6.66%

6.90%

6.60%

6.66%

7.38%

7.29%

Legacy SLM

Navient

(1)

Smart

Option

loans

considered

‘P&I

Repayment’

only

borrowers

are

subject

full

principal

and

interest

payments

the

loan.

(2) Assumes Prime/LIBOR spread of 3.05% for 2013-C, 2013-B and 2013-A, and 2.75% for all previous transactions; SLMA 2014-A, NAVSL 2014-A and NAVSL 2015-A assume Prime/LIBOR

spread at 3.00%.

(1)

(2)

SMB Trust Collateral Characteristics Comparison

Source: Sallie Mae

NAVSL

SMB

NAVSL

Legacy SLM

SMB

NAVSL

Legacy SLM

SMB

NAVSL

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

72%

75%

71%

75%

77%

79%

80%

81%

82%

79%

80%

93%

Cosigner Rate

690

700

710

720

730

740

750

737

736

733

735

736

737

740

733

741

740

742

739

731

747

Original FICO

Recent FICO

FICO

Smart Option Mix

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10%

20%

30%

40%

45%

48%

63%

64%

63%

50%

100%

Weighted Average Term to Maturity (Mos.)

100

150

200

250

192

189

182

171

164

151

144

148

144

146

143

150

161

155

140

Collections, Charge-off and Recovery Policy

Sallie Mae Bank Servicing Policy

Policy

Pre-Spin, Legacy SLM Serviced

Post-Spin,

Sallie

Mae

Bank

Serviced

(1)

Delinquencies

All loans serviced by an affiliate of legacy SLM; loan

owned by Sallie Mae Bank sold to legacy SLM after

becoming 90+ days past due

Sallie Mae Bank collects delinquent loans thru charge-off, placing

emphasis on returning loans to current status during early

delinquency

Charge-offs

Loans serviced by legacy SLM charge off at 212+

days past due

Loans serviced by Sallie Mae Bank charge off at 120+ days past

due

Recoveries

Post-charge off collections managed by legacy SLM;

recoveries realized over 10+ years

Charged-off loans sold soon after charge-off; recoveries realized

immediately

(1)

Forbearance

Granted for 3 mo. intervals with a 12 month

maximum, with fee

Granted for 3 mo. intervals with a 12 month maximum, no fee

Sallie Mae Bank Forbearance Policy -

First

choice

always

collect

payment

from

the

borrower

co-signer

If payment is not possible, forbearance temporarily provides borrowers limited time to improve their ability to repay during temporary economic

hardship

The vast majority of loans do not use forbearance; those that do, remain in forbearance for less than 12 months

(1)

Sallie

Mae

Bank

intends

add

third

party

collection

agency

management,

account

placement

and

other

functionality

necessary

managed

charge-off

loan

collections

internally.

the

future,

Sallie

Mae

expects

have

the

option

selling

internally

managing

collections

charged

off

loans,

and

utilize

one

both

those

strategies

any

time

based

market

conditions.

Sallie Mae Bank Collections

Each customer is approached individually, and the account manager is educated and empowered to identify optimal resolution

Co-borrowers are contacted and collected with similar efforts as the primary borrower

Sallie Mae Bank employs a front-loaded, stage based collections approach:

Early Stage Loan Collections

(1 –

29 days delinquent as of the first of the month)

–

Calling activity begins as early as 1 cycle day behind (5 days past their due date in most instances)

–

Dialer based calling and automated messaging are leveraged for early delinquency

–

E-mail and letter campaigns compliment calling efforts

Mid-Stage Loan Collections

(30 –

59 days delinquent as of the first of the month)

–

Continue early stage activities

–

Account is assigned to a collector’s queue based on the delinquency and the type of loan. Collection campaign includes telephone

attempts and manual & batch skip tracing

Late Stage Loan Collections

(60+ days delinquent as of the first of the month)

–

Continue both early and mid-stage activities

–

Tenured route management collectors and customized letter campaigns

Cash

collection

the

primary

focus,

but

variety

tools

are

also

available

collectors

aid

resolving

delinquency:

–

Auto pay –

Monthly payment made automatically, prior delinquency cleared with forbearance

–

Three Pay –

After three scheduled monthly payments are made, prior delinquency cleared with forbearance

–

Term Extension –

Extend term for monthly payment relief, enrolled after three qualifying payments

–

Rate Reduction –

Reduce rate for monthly payment relief, enrolled after three qualifying payments

–

Rate

Reduction

with

Term

Extension

–

Reduced

rate

and

extended

term

–

Additional

programs

are

available

when

all

other

methods

are

not

adequate

Bankruptcy

Collections

Policy

–

Collection

activity

stops

both

parties

the

loan

file

bankruptcy

(borrower

and

cosigner);

otherwise,

collections can continue on the non-filing party

Recovery Operations

In the near term, Sallie Mae Bank plans to sell charged-off loans to third parties following charge-off at 120+ days past due

–

Recoveries realized immediately

–

Practical and predictable economics

–

Manageable compliance and vendor oversight requirements

Initial charged off loan sale occurred in December 2014

Forward

flow

agreement

with

“preferred”

debt

buyer

place

through

September

2015

–

High teens sales price for newly charged-off loans

Post-Default Recoveries

Sallie Mae Bank intends to add third party collection agency management, account placement and other

functionality necessary to support charged-off loan collections internally

In the future, Sallie Mae Bank expects to have the option of selling or internally managing collections of charged off

loans, and to utilize one or both of those strategies at any time based on market conditions

Smart Option: Cumulative Recoveries

Recoveries of charged-off Smart Option loans historically have occurred over a longer period and have been

higher than for many other types of unsecured consumer credit

(1)

Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or completeness

of the data provided under the agreement.

Note:

Recovery

data

for

collections

charged

off

Smart

Option

loans

managed

legacy

SLM

and

Navient.

Sallie

Mae

Bank

currently

selling

charged

off

loans

third

parties.

Sallie

Mae

Bank

intends

add

third

party

collection

agency

management,

account

placement

and

other

functionality

necessary

managed

charge-off

loan

collections

internally.

the

future,

Sallie

Mae

expects

have

the

option

selling

internally

managing

collections

charged

off

loans,

and

utilize

one

both

those

strategies

any

time

based

market

conditions.

Legacy

SLM

and

Navient

portfolio

serviced

pursuant

212

day

charge-off

policy.

Sallie

Mae

Bank

portfolio

serviced

pursuant

120

day

charge-off

policy.

Historical

trends

may

not

indicative

future

performance.

20.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Monthly Periods Since Charge Off

Smart Option Loan Cumulative Recovery Rate

for Charge-Off Vintages Since 2011

(1)

Data

for

Legacy

SLM,

Navient

and

Sallie

Mae

Bank

Combined

thru

November

31,

2014

Private Education Loan Market Background

Unsecured

consumer

loans

made

qualified

borrowers

and

co-signers

fund

the

cost

undergraduate,

graduate and other forms of post-secondary education

Unlike FFELP Loans, private education loans are not guaranteed against losses by the Department of

Education, or any other entity

Similar to FFELP loans, private education loans are generally non-dischargeable in bankruptcy

Private education loans are made to students attending public, private, not-for-profit, and for profit institutions

Students and parents are encouraged to exhaust other sources of aid prior to applying for a private

education loan

Private Education Loan Characteristics

Sallie Mae Bank Smart Option Private Education Loans

FFELP vs. Sallie Mae Bank Smart Option Private Education Loan Comparison

FFELP Stafford Loans

Sallie Mae Bank Smart Option

Private

Education

Loans

(1)

Borrower

Student

Student or Parent

Co-signer

None

Typically a parent

Lender

Eligible banks and private lenders under FFELP

Banks and other private sector lenders

Guarantee

97-100% of principal and interest by the U.S. Department

of Education

Not

guaranteed by the U.S. Government or any other entity

Interest Subsidy/Special Allowance

Payments

Paid by the U.S. Department of Education

Not Applicable

Underwriting

Borrower must have no outstanding student loan defaults

or bankruptcy

Consumer credit underwriting, with minimum FICO,

custom credit score model, and judgmental underwriting

Pricing

Fixed or floating rate depending on origination year and

loan program

Risk-based, variable rate indexed to LIBOR or fixed rate

Maximum Amount per Year

$5,500-$7,500 for dependent student, based on year in

school

Up to the full cost of education, less grants and federal

loans

Repayment Term

10 years, with repayment deferred until after graduation

5 to 15 years, may pay interest or a $25 fixed payment

while in school, or may be deferred until after graduation

Collections

Based on prescribed U.S. Dept of Education regulations

Typical consumer loan collections activities, managed

independent of FFELP

Deferment

Permitted for a variety of reasons, including economic

hardship

Granted to students who return to school, and are

involved in active military service

Forbearance

Permitted for a variety of reasons, including economic

hardship

Typically granted for economic hardship, up to a

maximum of 12 months

Dischargeable in Bankruptcy

(2)

(1) Pertains to the Sallie Mae Smart Option loan product.

(2) Private education loans are typically non-dischargeable in bankruptcy, unless a borrower can prove that repayment of the loan would impose an "undue hardship“.

Favorable Student Loan Market Trends

(billions)

(thousands)

(1)

Source: U.S. Department of Education, National Center for Education Statistics, Projections of Education Statistics to 2022.

(2)

Source:

Trends

College

Pricing.©

2014

The

College

Board,.

www.collegeboard.org;

Note:

Academic

years,

average

published

tuition,

fees,

room

and

board

charges

four-year

institutions;

enrollment-

weighted.

(3)

“Total

post-secondary

education

spend”

estimated

Sallie

Mae

determining

the

full-time

equivalents

for

both

graduates

and

undergraduates

and

multiplying

estimated

total

per

person

cost

attendance for each school type. In doing so, we utilize information from the US Department of Education, College Board, MeasureOne, National Student Clearinghouse and Company Analysis. Other

sources for these data points also exist publicly and may vary from our computed estimates.

(4)

Source: Trends in College Pricing.©

2014 The College Board,. www.collegeboard.org, U.S. Department of Education 2014.

Federal

Loans

$97

Family

Contributions

$151

Grants

$124

Ed. Tax

Benefit /

Work Study

$20

$17

$93

$28

AY 2004-2005

$110

$46

Full-Time

Private School

Full-Time

Public School

$27

$143

$49

AY 2014-2015

$168

$76

Full-Time

Private School

Full-Time

Public School

Private

Education

Loans

Total Estimated Cost: $402bn

12.1

12.9

13.3

13.5

13.7

2008

2009

2010

2011

2012

2013

(millions)

$12

$13

$14

$15

$16

$17

$18

$19

$29

$30

$32

$34

$35

$36

$38

$39

$41

$42

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Public

Private

(thousands)

Enrollment at Four-Year Degree Granting Institutions

(1)

Estimated

Total

Cost

Education

–

2014

2015

(3)

Cost of College (Based on a Four-Year Term)

(4)

Annual Cost of Education

(2)

Higher Education Value Proposition

(1)

Source: U.S. Bureau of Labor Statistics

(2)

Source: PEW Research Center

(3)

Source: Brown Center on Education Policy at Brookings: Is a Student Loan Crisis on the Horizon

(4)

Source: College Board, Trends in Student Aid, 2014

Relationship Between Higher Education,

Income and Employment

(1)

Widening Earnings Gap of Young Adults

by Educational Attainment

(2)

Payment to Income Ratio

(3)

200

400

600

800

1,000

1,200

1,400

1,600

1,800

10%

12%

Unemployment

Average weekly income

$ 7,499

$ 9,690

$ 14,245

$ 15,780

$ 17,500

Silents in

1965

Early

Boomers in Boomers in

1979

Late

1986

Gen Xers

1995

Millenials in

2013

Less than H.S.High schoolSome college

Associate

Bachelor's

Master's

DoctorateProfessional

The unemployment rate for 25-

to 34-year-olds with four-year college degrees was 4.1%, whereas 11.2% of high

school graduates in this age range were unemployed

60% of students graduate with student loans

69% of student loan borrowers have debt balances less than $25,000 and 4% have balances above $100,000

(average borrowings of $27,300)

The average payment-to-income ratio declined from 15% in 1992 to 7% in 2010

Key Statistics

(4)

Average outstanding student loan balance per borrower = $25,361.

40% owe less than $10,000

4% owe more than $100,000

Average Indebtedness Remains Manageable

Source:

College

Board,

“Trends

Student

Aid,

2014”

(https://secure-media.collegeboard.org/digitalServices/misc/trends/2014-trends-student-aid-report-final.pdf)

69%

18%

Less than $25,000

$25,000 to $50,000

$50,000 to $100,000

Over $100,000

Private Education Loan Lifecycle

Loan made to

borrower/

co-signer

In School Status

(Additional Borrowing)

Grace Status

After graduation

(generally 6 months)

Repayment Status

Deferment Status

(back to school)

(up to 48 months)

Default

(120+ days

delinquent)

IN SCHOOL AND GRACE

REPAYMENT

On Time

Payment

PAID IN FULL

Delinquent

(30+ days)

Post-Default

Recovery

Note: Interest capitalization occurs after Grace,

Deferment, and Forbearance periods

Forbearance Status

(3 month increments;

up to 12 months)

Cohort Default Triangles

The following cohort default triangles provide loan performance information for Legacy SLM, Navient and Sallie Mae Bank

serviced

Smart

Option

loans

combined,

thru

the

most

recent

period

indicated

(1)

Terms and calculations used in the cohort default triangles are defined below:

P&I

Repayment

Year

–

The

calendar

year

that

loans

entered

P&I

repayment

–

All

Smart

Option

loans

are

considered

P&I

repayment

any

time

the

borrower

required

make

full

principal

and

interest

payments on the loan

Disbursed

Principal

Entering

P&I

Repayment

–

The

amount

principal

entering

P&I

repayment

given

year,

based

disbursed

principal

prior to any interest capitalization

Years

P&I

Repayment

–

Measured

years

between

P&I

repayment

start

date

and

default

date.

Year

zero

represents

defaults

that

occurred

prior to the start of P&I repayment

Periodic

Defaults

–

Defaulted

principal

each

Year

P&I

Repayment

percentage

the

disbursed

principal

entering

repayment

each

P&I Repayment Year

–

Defaulted

principal

includes

any

interest

capitalization

that

occurred

prior

default

–

Defaulted

principal

not

reduced

any

amounts

recovered

after

the

loan

defaulted

–

Because

the

numerator

includes

capitalized

interest

while

the

denominator

does

not,

default

rates

are

higher

than

the

numerator

and

denominator both included capitalized interest

Total

–

The sum of Periodic Defaults across Years in P&I Repayment for each P&I Repayment Year

(1) Data excludes loans made to borrowers attending certain for profit schools not included in legacy SLM securitizations. Excluded loans represent less than one percent of the total loan balances.

Note:

Historical

trends

suggested

the

cohort

default

triangles

may

not

indicative

future

performance.

Legacy

Sallie

Mae

and

Navient

serviced

loans

were

serviced

pursuant

212

day

charge

off

policy.

Sallie

Mae

Bank

serviced

loans

were

serviced

pursuant

120

day

charge

off

policy.

Smart Option Loan Program Cohort Default Triangles

Cohort Default Triangles –

Smart Option Combined (IO, Fixed & Deferred)

Data as of 12/31/14.

(1)

Private education loans marketed under the Smart Option Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

Repayment

are

for

partial

year.

(3)

Numerator is the amount of principal in each P&I Repayment Cohort that defaulted in each Year in P&I Repayment. Denominator is the amount of disbursed principal for that P&I Repayment Year.

Repayment

Year

Disbursed Principal

Entering P&I

Repayment ($m)

Periodic

Defaults

Years

P&I

Repayment

Total

2011

$942

0.9%

1.1%

1.3%

1.0%

0.3%

4.5%

2012

$1,631

0.5%

0.8%

1.2%

0.4%

2.9%

2013

$2,299

0.4%

0.9%

0.5%

1.8%

Repayment

Year

Disbursed Principal

Entering P&I

Repayment ($m)

Periodic

Defaults

Years

P&I

Repayment

Total

2011

$865

0.8%

0.9%

1.2%

0.9%

0.3%

4.1%

2012

$1,488

0.5%

0.7%

1.1%

0.3%

2.5%

2013

$2,088

0.3%

0.7%

0.5%

1.5%

Repayment

Year

Disbursed Principal

Entering P&I

Repayment ($m)

Periodic

Defaults

Years

P&I

Repayment

Total

2011

$77

2.0%

2.6%

2.1%

1.6%

0.4%

8.7%

2012

$143

1.2%

2.4%

2.8%

0.7%

7.2%

2013

$211

0.9%

2.7%

1.2%

4.8%

Note: Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or

completeness of the data provided under the agreement.

Smart

Option

Combined

(P&I

Repayment

Status

Co-Signer)

Smart

Option

Combined

(P&I

Repayment

Status

Co-Signer)

(1), (2), (3)

Smart

Option

Combined (P&I

Repayment

Status

Total)

Cohort Default Triangles –

Smart Option Interest Only

Repayment

Year

Disbursed Principal

Entering P&I

Repayment ($m)

Periodic

Defaults

Years

P&I

Repayment

Total

2011

$671

1.1%

1.3%

0.9%

0.3%

4.8%

2012

$805

0.8%

0.7%

1.0%

0.3%

2.8%

2013

$895

0.6%

0.4%

1.5%

Repayment

Year

Disbursed Principal

Entering P&I

Repayment ($m)

Periodic

Defaults

Years

P&I

Repayment

Total

2011

$622

1.0%

1.3%

0.9%

0.3%

4.5%

2012

$742

0.7%

0.6%

0.9%

0.3%

2.5%

2013

$823

0.5%

0.3%

1.3%

Repayment

Year

Disbursed Principal

Entering P&I

Repayment ($m)

Periodic

Defaults

Years

P&I

Repayment

Total

2011

$49

2.5%

2.4%

2.0%

1.6%

0.5%

9.0%

2012

$62

1.6%

1.8%

2.2%

0.6%

6.1%

2013

$72

1.5%

1.9%

0.9%

4.4%

Data as of 12/31/14.

(1)

Private education loans marketed under the Smart Option Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

Repayment

are

for

partial

year.

(3)

Numerator is the amount of principal in each P&I Repayment Cohort that defaulted in each Year in P&I Repayment. Denominator is the amount of disbursed principal for that P&I Repayment Year.

Note: Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or

completeness of the data provided under the agreement.

(1), (2), (3)

Smart

Option

(P&I

Repayment

Status

Co-Signer)

Smart

Option

(P&I

Repayment

Status

Co-Signer)

Smart

Option

(P&I

Repayment

Status

Total)

Cohort Default Triangles –

Smart Option Fixed Payment

Repayment

Year

Disbursed Principal

Entering

Periodic

Defaults

Years

P&I

Repayment

P&I Repayment ($m)

Total

2011

$271

0.3%

1.1%

1.2%

1.0%

0.2%

3.8%

2012

$598

0.4%

0.8%

1.5%

0.4%

3.1%

2013

$778

0.3%

0.8%

0.6%

1.8%

Repayment

Year

Disbursed Principal

Entering

Periodic

Defaults

Years

P&I

Repayment

P&I Repayment ($m)

Total

2011

$244

0.2%

0.9%

1.1%

0.9%

0.2%

3.4%

2012

$544

0.3%

0.7%

1.3%

0.4%

2.6%

2013

$713

0.3%

0.7%

0.5%

1.5%

Repayment

Year

Disbursed Principal

Entering

Periodic

Defaults

Years

P&I

Repayment

P&I Repayment ($m)

Total

2011

$27

1.2%

3.0%

2.2%

1.6%

0.1%

8.1%

2012

$54

1.4%

2.4%

3.4%

0.9%

8.2%

2013

$65

1.0%

2.5%

1.1%

4.6%

Data as of 12/31/14.

(1)

Private education loans marketed under the Smart Option Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

Repayment

are

for

partial

year.

(3)

Numerator is the amount of principal in each P&I Repayment Cohort that defaulted in each Year in P&I Repayment. Denominator is the amount of disbursed principal for that P&I Repayment Year.

Note: Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or

completeness of the data provided under the agreement.

(1), (2), (3)

Smart

Option

Fixed

Payment

(P&I

Repayment

Status

Total)

Smart

Option

Fixed

Payment

(P&I

Repayment

Status

Co-Signer)

Smart

Option

Fixed

Payment

(P&I

Repayment

Status

–

Co-Signer)

Cohort Default Triangles –

Smart Option Deferred Payment

Repayment

Disbursed Principal

Entering

Periodic

Defaults

Years

P&I

Repayment

Year

Repayment ($m)

Total

2012

$229

0.0%

1.4%

0.3%

3.1%

2013

$627

0.0%

1.6%

0.5%

2.2%

Repayment

Disbursed Principal

Entering

Periodic

Defaults

Years

P&I

Repayment

Year

Repayment ($m)

Total

2012

$202

0.0%

1.1%

1.2%

0.2%

2.4%

2013

$553

0.0%

1.3%

0.4%

1.7%

Repayment

Year

Disbursed Principal

Entering

Periodic

Defaults

Years

P&I

Repayment

Repayment ($m)

Total

2012

$27

0.0%

4.3%

2.8%

0.6%

7.7%

2013

$75

0.0%

4.1%

1.1%

5.3%

Data as of 12/31/14.

(1)

Private education loans marketed under the Smart Option Student Loan brand.

(2)

Periodic

Defaults

for

the

most

recent

calendar

Year

Repayment

are

for

partial

year.

(3)

Numerator is the amount of principal in each P&I Repayment Cohort that defaulted in each Year in P&I Repayment. Denominator is the amount of disbursed principal for that P&I Repayment Year.

Note: Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or

completeness of the data provided under the agreement.

(1), (2), (3)

Smart

Option

Deferred

(P&I

Repayment

Status

Total)

Smart

Option

Deferred

(P&I

Repayment

Status

Co-Signer)

Smart

Option

Deferred

(P&I

Repayment

Status

–

Co-Signer)

SLM Corp - FORM 8-K - EX-99.1 - April 3, 2015

Attached files

SLM Corp Reports